Is CAE a Smart Long-Term Buy?

ClearBridge Investments, an investment management firm, published its “International Growth EAFE Strategy” second quarter 2022 investor letter – a copy of which can be downloaded here. During the second quarter, the ClearBridge International Growth EAFE Strategy performed in line with its MSCI EAFE Index benchmark. The Strategy had losses across the 10 sectors in which it was invested (out of 11 total). The information technology (IT) and industrials sectors were the primary detractors. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, ClearBridge International Growth EAFE Portfolio mentioned CAE Inc. (NYSE:CAE) and explained its insights for the company. Founded in 1947, CAE Inc. (NYSE:CAE) is a Montreal, Canada-based flight training company with a $8.4 billion market capitalization. CAE Inc. (NYSE:CAE) delivered a 5.86% return since the beginning of the year, while its 12-month returns are down by -12.71%. The stock closed at $26.72 per share on August 04, 2022.

Here is what ClearBridge International Growth EAFE Portfolio has to say about CAE Inc. (NYSE:CAE) in its Q2 2022 investor letter:

“In addition to Iberdrola, new purchases among structural growers during the quarter included CAE (NYSE:CAE), a Canada-based global producer of flight simulators as well as a provider of training services for pilots. The company will benefit from a recovery in business and commercial travel post-pandemic, a trend currently restrained by an acute shortage of trained pilots. CAE has expanded, both organically and through acquisitions, over the last few years and is emerging as a stronger and more diversified player after the recession in its end markets.”

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Our calculations show that CAE Inc. (NYSE:CAE) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. CAE Inc. (NYSE:CAE) was in 10 hedge fund portfolios at the end of the second quarter of 2022, compared to 7 funds in the previous quarter. CAE Inc. (NYSE:CAE) delivered a 11.10% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.